You’ve heard it over and over again over the past year: the real estate market is booming. Interest rates are low, home prices are up and buyers are excited for a change of
Considering A Short Term Rental Investment? 5 Tips To Success
Dated: November 9 2021
Whether you currently own short term rentals or are considering if this is right for you, it's important to know how things have changed post-pandemic, and what you can do going forward to set yourself up for success.
Tip #1: Choose The Right Property
According to VRBO, 75% of the short term rentals booked in 2020 were standalone properties. Two bedroom homes made up the largest proportion of properties while five bedroom homes had the most booked nights.
31% of all properties had annual revenue of $16,951 with annual average revenue for a five bedroom increased by $11,316 to nearly $190,000 annually.
Tip #2: Taylor Amenities To Meet Post-Covid Needs
Dedicated office space is a trend that's not going away any time soon. Properties that offer the capabilities to easily hook up to a Zoom room or other online video platform along with a dedicated desk space that can be closed off from the rest of the home are highly desirable. This also includes high speed internet which can easily run video conferencing and other online streaming.
Tip #3: Adhere to Increased Cleaning Standards
According to Airbnb, adhering to a higher level of cleaning standards is the new norm that guests expect. Ensuring your property(s) follow guidelines suggested by the CDC and other organizations is crucial for meeting the expectations of guests. If fact, one of the most popular reasons guests write negative reviews is because of cleanliness.
Tip #4: Raving Fans
It doesn't matter how pretty the photos of your property are, and how great the location appears to be. 3rd party reviews validate a future guest's decision to book a reservation. Many people make their entire buying decisions based on reviews, so making sure you have some, and they are good means a lot. Asking for a review from your guests is also a great way to identify how to improve or if something needs to be repaired or replaced. If you get a negative review, look at it as a way to improve your property for future guests.
Tip #5: Hire Professional Property Management Company
This will. be your weight in gold. Having a professional manage your short term rental is key to taking the stress off your shoulders not having to deal with 24/7 emergencies, rent collections, guest check in/check out, housekeeping schedules, and accounting. It also allows your properties to be professionally marketed many times reaching an international audience of millions of people. This gives you the freedom in knowing your investment is being properly cared for and is producing an ROI. It allows freedom of not being constrained to be close to the property, so you have more time available to do the things you love.
If this article has stirred your interest in investing in the Sarasota area, contact one of our real estate consultants at (941) 306-4242.
I have lived and worked in Sarasota for over 20 years. As a former corporate executive, I recognize the importance of accountability and a strong work ethic. In a real estate transaction, you are the ....
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Whether you currently own short term rentals or are considering if this is right for you, it's important to know how things have changed post-pandemic, and what you can do going forward to set